SUPERVISION AND CONTROL

Nev. Rev. Stat. 658
in effect

Nev. Rev. Stat. § 658.015 Administration of provisions of certain chapters.

The Commissioner and the Division of Financial Institutions shall administer the provisions of chapters 657 to 671, inclusive, of NRS, subject to administrative supervision by the Director of the Department of Business and Industry.

Nev. Rev. Stat. § 658.021 Commissioner: Qualifications; restrictions on other employment.

The Commissioner: 1. Must be a person who has had practical experience in banking, savings and loan associations, savings banks or other financial institutions. 2. Except as otherwise provided in NRS 284.143 , shall devote his or her entire time and attention to the business of his or her office and shall not pursue any other business or occupation or hold any other office of profit.

Nev. Rev. Stat. § 658.025 Commissioner prohibited from having interest in bank or regulated corporation.

The Commissioner must not, either directly or indirectly, be interested in any bank or corporation to which chapters 657 to 671, inclusive, of NRS are applicable, except as a depositor, nor engage in business as a personal loan broker.

Nev. Rev. Stat. § 658.035 Oath of Commissioner.

After appointment and before entering upon the discharge of the duties of office, the Commissioner shall take and subscribe to an official oath.

Nev. Rev. Stat. § 658.045 Office.

The Division of Financial Institutions must be furnished with suitable offices for the performance of its duties.

Nev. Rev. Stat. § 658.055 Deputy commissioners; other employees; independent audits and examinations; assessments; Account for Auditing Financial Institutions.

1. The Commissioner may appoint deputy commissioners of financial institutions, examiners, assistants, clerks, stenographers and other employees necessary to assist the Commissioner in the performance of the Commissioner’s duties pursuant to this title or any other law. These employees shall perform such duties as are assigned to them by the Commissioner. 2. The Commissioner shall employ a certified public accountant to review and conduct independent audits and examinations of financial institutions. The Commissioner shall levy an assessment upon each licensed financial institution to cover all of the costs related to the employment of the certified public accountant and the performance of the audits and examinations. 3. Assessments collected by the Commissioner pursuant to subsection 2 must be deposited in the State Treasury for credit to the Account for Auditing Financial Institutions, which is hereby created in the State General Fund. Money in the Account may be used by the Commissioner or for any purpose authorized by the Legislature. The Commissioner may advance money from the Account, for the purposes specified in subsection 2.

Nev. Rev. Stat. § 658.065 Oath of deputy commissioners.

Every deputy commissioner of financial institutions shall, before entering upon the discharge of duties, take and subscribe to the constitutional oath of office.

Nev. Rev. Stat. § 658.085 Advisory capacity of State Board of Finance.

The State Board of Finance shall act in an advisory capacity to the Division of Financial Institutions in the administration of the provisions of chapters 657 to 671, inclusive, of NRS and perform such other functions as are required by those provisions.

Nev. Rev. Stat. § 658.091 Deposit, use and disposition of money; Commissioner to administer account.

1. Except as otherwise provided by law, any money appropriated to the Commissioner or the Division of Financial Institutions and any money collected by the Commissioner or Division pursuant to law: (a) Must be deposited in the State Treasury and accounted for separately in the State General Fund; and (b) May only be used to: (1) Carry out the programs and laws administered by the Commissioner and the Division; and (2) Pay the expenses related to the operations of the Commissioner and the Division. 2. Except as otherwise provided by law, any money that remains in the account at the end of the fiscal year does not revert to the State General Fund, and the balance of the account must be carried forward to the next fiscal year. 3. The Commissioner shall administer the account. Any interest or income earned on the money in the account must be credited to the account, after deducting any applicable charges. Any claims against the account must be paid as other claims against the State are paid.

Nev. Rev. Stat. § 658.096 Fees charged by Commissioner; regulations.

1. The Commissioner shall charge and collect the following fees in connection with the Commissioner’s official duties: (a) For licensing of state banks: (1) A fee of not more than $400 for each parent bank, payable on June 30 of each year. (2) A fee of not more than $200 for each branch bank or trust office, payable on June 30 of each year. Ê The fees must accompany the application for renewal of the license. A penalty of 10 percent of the fee must be charged for each month or part of a month that the fees are not paid after June 30 of each year. (b) For applications for new branch banks or trust offices, a nonrefundable fee of not more than $400 for the application and survey, to be paid by the applicant at the time of making the application. The applicant must also pay such additional expenses incurred in the process of investigation as the Commissioner deems necessary. All money received by the Commissioner pursuant to this paragraph must be placed in the Investigative Account for Financial Institutions created by NRS 232.545 . (c) For examinations and the examination of trust departments of state banks or trust offices, a fee for conducting the examination and for preparing and typing the report of the examination at the rate established and, if applicable, adjusted pursuant to NRS 658.101 . 2. Except as otherwise provided in NRS 658.101 , the Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section. 3. Except as otherwise provided in paragraph (b) of subsection 1, all money collected pursuant to this section must be deposited in the State Treasury pursuant to the provisions of NRS 658.091 . 4. As used in this section, “trust office” has the meaning ascribed to it in subsection 4 of NRS 662.239 .

Nev. Rev. Stat. § 658.098 Assessment for cost of legal services provided to Commissioner and Division of Financial Institutions; deposit of money in State Treasury.

1. On a quarterly or other regular basis, the Commissioner shall collect an assessment pursuant to this section from each: (a) Check-cashing service or deferred deposit loan service that is supervised pursuant to chapter 604A of NRS; (b) Collection agency that is supervised pursuant to chapter 649 of NRS; (c) Bank that is supervised pursuant to chapters 657 to 668 , inclusive, of NRS; (d) Trust company or family trust company that is supervised pursuant to chapter 669 or 669A of NRS; (e) Person engaged in the business of money transmission that is supervised pursuant to chapter 671 of NRS; (f) Savings and loan association or savings bank that is supervised pursuant to chapter 673 of NRS; (g) Person engaged in the business of lending that is supervised pursuant to chapter 675 of NRS; (h) Thrift company that is supervised pursuant to chapter 677 of NRS; (i) Credit union that is supervised pursuant to chapter 672 of NRS; (j) Consumer litigation funding company that is supervised pursuant to chapter 604C of NRS; and (k) Student loan servicer that is supervised pursuant to chapter 670B of NRS. 2. The Commissioner shall determine the total amount of all assessments to be collected from the entities identified in subsection 1, but that amount must not exceed the amount necessary to recover the cost of legal services provided by the Attorney General to the Commissioner and to the Division of Financial Institutions. The total amount of all assessments collected must be reduced by any amounts collected by the Commissioner from an entity for the recovery of the costs of legal services provided by the Attorney General in a specific case. 3. The Commissioner shall collect from each entity identified in subsection 1 an assessment that is based on: (a) A portion of the total amount of all assessments as determined pursuant to subsection 2, such that the assessment collected from an entity identified in subsection 1 shall bear the same relation to the total amount of all assessments as the total assets of that entity bear to the total of all assets of all entities identified in subsection 1; or (b) Any other reasonable basis adopted by the Commissioner. 4. The assessment required by this section is in addition to any other assessment, fee or cost required by law to be paid by an entity identified in subsection 1. 5. Money collected by the Commissioner pursuant to this section must be deposited in the State Treasury pursuant to the provisions of NRS 658.091 .

Nev. Rev. Stat. § 658.101 Rates charged by Commissioner for supervision and examination; annual review and publication of rates.

1. The Commissioner shall establish by regulation rates to be paid by banks and other financial institutions for supervision and examinations by the Commissioner or the Division of Financial Institutions. 2. In establishing a rate pursuant to subsection 1, the Commissioner shall consider: (a) The complexity of the various examinations to which the rate applies; (b) The skill required to conduct the examinations; (c) The expenses associated with conducting the examination and preparing a report; and (d) Any other factors the Commissioner deems relevant. 3. At least once each year, the Commissioner shall review and analyze the proportional utilization of the resources of the Division of Financial Institutions by banks and other financial institutions as compared to the annual budget approved by the Legislature for the Division of Financial Institutions. If after such review and analysis the Commissioner deems it necessary, the Commissioner shall adjust by regulation the rates established pursuant to subsection 1. 4. The Commissioner shall publish on the Internet website of the Division of Financial Institutions by December 31 of each year the amount of each fee for the following year that results from the rates established and, if applicable, adjusted pursuant to this section. 5. As used in this section, “financial institution” means a depository institution or any other institution or business regulated by the Division of Financial Institutions pursuant to titles 52, 54 and 55. The term includes, without limitation, a holding company, affiliate or subsidiary of such an institution.

Nev. Rev. Stat. § 658.105 Powers of Commissioner; regulations.

In addition to the other powers conferred upon the Commissioner by chapters 657 to 671, inclusive, of NRS, the Commissioner: 1. Is charged with the enforcement of the provisions of chapters 657 to 671 , inclusive, of NRS, subject to administrative supervision by the Director of the Department of Business and Industry; 2. May make and publish regulations for the governing of banks doing business under the provisions of chapters 657 to 671 , inclusive, of NRS; and 3. May require banks to furnish an audited financial statement prepared by an independent certified public accountant licensed to do business in Nevada. 4. Shall adopt regulations establishing procedures and requirements for notifying the Commissioner of a notification event pursuant to NRS 604A.409 , 604C.410 , 604D.325 , 628B.515 , 649.340 , 669.235 , 670B.560 , 671.400 , 675.2505 and 676A.640 .

Nev. Rev. Stat. § 658.115 Summary orders of Commissioner.

1. The Commissioner shall make summary orders in writing as provided in subsections 2 to 5, inclusive. 2. If a bank, a member of its board of directors or any manager, officer, employee, member or stockholder violates the articles of incorporation or organization of the bank or any law related to banking, or, in the opinion of the Commissioner, is conducting its business in an unauthorized or unsafe manner, the Commissioner shall forthwith issue an order, in writing, directing the discontinuance of the unauthorized or unsafe practices. 3. If it appears to the Commissioner that the stockholders’ or members’ equity of any bank has been reduced below the requirements of law, or that the articles of incorporation of the bank have been unlawfully amended to reduce the authorized stock of the bank in violation of NRS 661.035 , the Commissioner shall forthwith issue an order directing the bank to make good the deficiency forthwith or within a time specified in the order. 4. If it appears to the Commissioner that the total reserves or reserves on hand of any bank are below the amount required by law to be maintained, or that a bank is not keeping its reserves on hand as required by chapters 657 to 671 , inclusive, of NRS, the Commissioner shall forthwith issue an order directing the bank to make good its reserves forthwith, or within the time specified within the order, or that it keep its reserves on hand as required by this title. 5. If it appears to the Commissioner that any bank to which chapters 657 to 671 , inclusive, of NRS are applicable does not keep its books or accounts in such a manner as to enable the Commissioner readily to ascertain its true condition, the Commissioner shall issue an order requiring the bank, or the officers or managers thereof, or any of them, to open and keep its books or accounts as he or she may, in the Commissioner’s discretion, determine and prescribe for the purpose of keeping accurate and convenient records of the transactions and accounts of the bank.

Nev. Rev. Stat. § 658.125 Appeals to State Board of Finance.

Any bank aggrieved by any decision or order issued by the Commissioner or any member of the Commissioner’s staff must appeal to the State Board of Finance if a review of the decision or order is desired. The appeal must be made within 15 days after the decision or order is issued.

Nev. Rev. Stat. § 658.135 Attestation of licenses, orders and certificates.

All licenses, orders and certificates issued by the Commissioner must be attested by the seal of the Division of Financial Institutions and by the signature of the Commissioner.

Nev. Rev. Stat. § 658.145 Power of Commissioner to offer rewards.

1. The Commissioner may offer, under such conditions as the Commissioner may deem proper, rewards not to exceed the sum of $500 in any one case for the arrest and conviction of any officer, director, agent or employee of any bank charged with violating any of the laws of this State relating to banks and banking for which a criminal penalty is provided, or for the arrest and conviction of any person charged with stealing, with or without force, any money, property or thing of value of any bank. 2. The Commissioner shall pay out of the money deposited to the State Treasury pursuant to the provisions of NRS 658.091 all such rewards.

Nev. Rev. Stat. § 658.151 Power of Commissioner to take possession of business and property of depository institution; grounds.

1. The Commissioner may forthwith take possession of the business and property of any depository institution to which this title applies when it appears that the depository institution: (a) Has violated its charter or any laws applicable thereto. (b) Is conducting its business in an unauthorized or unsafe manner. (c) Is in an unsafe or unsound condition to transact its business. (d) Has an impairment of its stockholders’ or members’ equity. (e) Has refused to pay its depositors in accordance with the terms on which such deposits were received, or has refused to pay its holders of certificates of indebtedness or investment in accordance with the terms upon which those certificates of indebtedness or investment were sold. (f) Has become or is in imminent danger of becoming otherwise insolvent. (g) Has neglected or refused to comply with the terms of a lawful order of the Commissioner. (h) Has refused, upon proper demand, to submit its records, affairs and concerns for inspection and examination of an appointed or authorized examiner of the Commissioner. (i) Has made a voluntary assignment of its assets to trustees. (j) Has failed to pay a tax as required pursuant to the provisions of chapter 363A or 363C of NRS. 2. The Commissioner also may forthwith take possession of the business and property of any depository institution to which this title applies when it appears that the officers of the depository institution have refused to be examined upon oath regarding its affairs.

Nev. Rev. Stat. § 658.155 Penalty: Neglect of duty under certain chapters; false or injurious statement concerning bank; malfeasance or corruption in office.

Any member of the State Board of Finance, the Commissioner or any member of the Commissioner’s staff, who willfully neglects to perform any duty required by chapters 657 to 671, inclusive, of NRS, or who knowingly makes any false statement concerning any bank, or any injurious statement concerning any bank, except in the exercise of his or her duty, or who is guilty of malfeasance or corruption in office, is guilty of a category D felony and shall be punished as provided in NRS 193.130.

Nev. Rev. Stat. § 658.165 Officers and employees of Division of Financial Institutions prohibited from having interest in certain banks; exceptions; termination of interest.

1. Except as otherwise provided in subsections 3 and 4, an officer or employee of the Division of Financial Institutions shall not be directly or indirectly interested in or act on behalf of any bank chartered by this State, receive, directly or indirectly, any payment from any such bank, be indebted to any state bank, engage in the negotiation of loans for others with any such bank or obtain credit or services from a state bank conditioned upon a fraudulent practice or undue or unfair preference over other customers. 2. An employee of the Division of Financial Institutions in the unclassified service of the State shall not obtain new extensions of credit from a state bank while in office. 3. Any officer or employee of the Division of Financial Institutions may be indebted to a bank on the same terms as are available to the public generally upon: (a) A mortgage loan upon his or her own real property. (b) A secured installment debt. (c) An unsecured debt. 4. Any officer or employee of the Division of Financial Institutions may establish and maintain deposits with banks to the greatest amount insured, receive interest on those deposits and borrow money secured by a pledge of those deposits. 5. If an officer or employee of the Division of Financial Institutions has a service, a preferred consideration, an interest or a relationship prohibited by this section at the time of his or her appointment or employment, or obtains it during his or her employment, he or she shall terminate it within 120 days after the date of his or her appointment or employment or the discovery of the prohibited act.

Nev. Rev. Stat. § 658.175 State Board of Finance bound by limitations imposed on Commissioner as to certification of new banks and establishment of branch banks.

Notwithstanding any other provisions of chapters 657 to 671, inclusive, of NRS, the State Board of Finance, in the exercise of its authority to review the action of the Commissioner, is bound by the requirements, conditions and limitations imposed by chapters 657 to 671, inclusive, of NRS on the Commissioner as to the certification of new banks or the establishment of branch banks.

Nev. Rev. Stat. § 658.185 Incidental powers of Commissioner.

In addition to the express powers, duties and functions given to the Commissioner by chapters 657 to 671, inclusive, of NRS, the Commissioner has such other powers and rights as may be necessary or incident to the proper discharge of the Commissioner’s duties.

Nev. Rev. Stat. § 658.190 Regulations concerning nontraditional mortgage loan products and certain lending practices.

1. The Commissioner of Financial Institutions shall, with the cooperation of the Commissioner of Mortgage Lending, adopt regulations concerning nontraditional mortgage loan products and lending practices of persons and financial institutions that are required to be licensed or registered pursuant to the provisions of this title and chapter 645B of NRS and which make or offer to make loans that are secured by liens on real property. 2. The regulations required to be adopted by subsection 1 must be substantially similar to the provisions set forth in the “Guidance on Nontraditional Mortgage Product Risks” published by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators on November 14, 2006. 3. If the publication is revised, the Commissioner shall review the revision to determine whether the revision is suitable for this State. If the Commissioner determines that the revision is suitable for this State, he or she shall adopt a regulation that includes the revision. 4. If the Commissioner determines that the revision is not suitable for this State, the Commissioner shall hold a hearing within 60 days after his or her determination and give notice of the hearing. If, after the hearing, the Commissioner does not revise his or her determination, the Commissioner shall give written notice within 30 days after the hearing that the revision is not suitable for this State. 5. As used in this section, “nontraditional mortgage loan product”: (a) Means a residential loan agreement whose terms allow a borrower to defer repayment of principal or payment of interest on the loan for a period. (b) Includes, without limitation: (1) An interest-only loan; and (2) A payment option adjustable-rate mortgage. (c) Does not include: (1) A home equity line of credit other than a simultaneous second-lien home equity line of credit; or (2) A reverse mortgage.

Nev. Rev. Stat. § 658.195 Right to sue and defend in actions involving banks; liability to suit.

1. The Commissioner may sue and prosecute or defend in any action or proceeding in any court of this State or any other state and in any court of the United States for the enforcement or protection of any right or pursuit of any remedy necessary or proper in connection with the subjects committed to the Commissioner for administration or in connection with any bank or the rights, liabilities, property or assets thereof, under the Commissioner’s supervision. 2. The Commissioner is not liable to be sued except as other departments and agencies of the State may be liable under the general law.

Nev. Rev. Stat. § 658.200 Nontraditional mortgage loan products; disclosures required.

1. A financial institution which is required to be licensed pursuant to the provisions of this title and which offers nontraditional mortgage loan products that are secured by liens on real property shall, with respect to each nontraditional mortgage loan made by the financial institution, disclose to the borrower adequate information concerning the actual costs and risks of the nontraditional mortgage loan product offered. 2. The disclosure required by subsection 1 must be written in language that is easy to understand, must be printed in at least 10-point bold type or font and must include, without limitation: (a) Information concerning potential increases in monthly payments, including information describing the circumstances under which interest rates or negative amortization could reach the contractual limits; (b) Information concerning the maximum monthly payment that the borrower may be required to pay if amortizing payments are required and the interest rate and negative amortization caps are reached; (c) Information concerning the circumstances under which structural payment changes will occur, the amount of the new payments and the method of calculating the amount of the new payments; (d) Information concerning negative amortization, including information describing the potential for increases in the principal balance and decreases in home equity and any other potential adverse consequences to the borrower resulting from negative amortization; (e) If a nontraditional mortgage loan product includes prepayment penalties, information explaining the prepayment penalties and the amount of the penalties; (f) If the financial institution offers full-document home loans in addition to low-document home loans, no-document home loans or stated-document home loans, information concerning any pricing premium that attaches to the low-document home loans, no-document home loans or stated-document home loans; and (g) For payment option adjustable-rate mortgages, information explaining each payment option available and the effect on the loan balance of each payment option. 3. A financial institution required to make a disclosure pursuant to subsection 1 shall, with respect to each nontraditional mortgage loan made by the financial institution, certify to the Commissioner that the financial institution has made the disclosure required by subsection 1. The financial institution may contract with a nonprofit or government-operated consumer credit counseling or housing counseling agency or a nonprofit or government-operated legal services agency which has been operating as such for the immediately preceding 7 years to provide the certification required by this subsection. 4. As used in this section: (a) “Low-document home loan” has the meaning ascribed to it in NRS 598D.100 . (b) “No-document home loan” has the meaning ascribed to it in NRS 598D.100 . (c) “Nonprofit or government-operated consumer credit counseling or housing counseling agency” means: (1) A person or organization which is recognized as a charitable organization pursuant to section 501(c)(3) of the Internal Revenue Code of 1986, 26 U.S.C. § 501(c)(3), and which is certified by the United States Department of Housing and Urban Development as a Housing Counseling Agency; (2) A government agency or government-operated organization which is certified by the United States Department of Housing and Urban Development as a Housing Counseling Agency; or (3) A person or organization which is recognized as exempt under section 501(c)(3) of the Internal Revenue Code of 1986, 26 U.S.C. § 501(c)(3), and which: (I) As its primary business, provides specialized personal and group counseling services to a person who is seeking to purchase a home or obtain legal advice regarding a real estate transaction and who is suffering or who may suffer economic hardship because of the extension of credit; (II) Acts as an agent for a person who is suffering or who may suffer economic hardship because of the extension of credit in his or her efforts to resolve economic hardships; (III) May receive money or any other thing of value for disbursement to one or more of the creditors of a person who is suffering or who may suffer economic hardship because of the extension of credit; and (IV) If it has a board of directors, has a board of directors with a majority of members who are not employed by the agency or otherwise receive any direct or indirect financial benefit from the provision of any services by the agency. (d) “Nonprofit or government-operated legal services agency” means an organization that provides legal services to low-income persons without charge, and: (1) Is a government agency or government-operated organization; or (2) Is recognized as a charitable organization pursuant to section 501(c)(3) of the Internal Revenue Code of 1986, 26 U.S.C. § 501(c)(3). (e) “Nontraditional mortgage loan product” has the meaning ascribed to it in NRS 658.190 and also includes an adjustable-rate mortgage, a low-document home loan, a no-document home loan and a stated-document home loan. (f) “Stated-document home loan” has the meaning ascribed to it in NRS 598D.100 .
Source: NV Statutes (Official Site)URL: https://www.leg.state.nv.us/nrs/NRS-658.htmlFetched: 10/4/2026